Mortgage lenders set their rates every morning after secondary markets have opened. The rates posted may last through the day, or they may not, depending on what happens in secondary markets during the day.
To quote a mortgage rate there are 8 transaction features that affect the rate quote:
Occupancy Type: Loans on second homes or rental properties will be priced higher than loans secured by the borrower’s primary residence.
Property Type: Loans secured by properties other than single-family detached homes maybe priced higher
Loan Purpose: Refinance loans in which the borrower withdraws cash will be priced higher than loans to finance a home purchase or to refinance without taking cash out.
Loan Amount: Loans that are over conforming loan limits (conforming limits are set by Fannie Mae, Freddie Mac, FHA and VA. These loan limits vary from county to county) can be priced higher
Down Payment: Loans with the smallest permissible down payment (3% for Conventional loans and 3.5% for FHA loans) may be priced higher than loans with a larger down payment. For loans with a down payment of under 20% on Conventional Loans, the cost of mortgage insurance will add to the final monthly payment. FHA will always have a mortgage insurance premium and will add to final monthly payment. VA loans don’t have mortgage insurance, but the veteran may have to pay a VA Funding Fee, which can add to the final monthly payment.
Credit Score: Loans with the lower credit scores will be priced higher than loans with a higher credit score.
Lock Period: Loans on which the lender locks the price for more than 30 days will be priced higher.
To get your mortgage interest quote customized to your particular mortgage transaction, simply use the quick from below to receive FREE and accurate rate quote.